For the Quarter Ending June 2023
North America
The price of Acrylic Staple Fibre (ASF) showed a mixed trend during the second quarter. In the first month of the second quarter, the price of ASF decreased due to low production costs amid falling crude oil and acrylonitrile prices.
However, producers had to reduce their run rates to meet the low demand, which added to the market pressure. Despite these weak fundamentals, the market was supported by high producer inventories and the weak global economy. Meanwhile, the price of ASF recovered slightly in the second month. Looking ahead, the US Bureau of Statistics reported that the Consumer Price Index for All Urban Consumers rose by 0.1% in May, providing further support for price increases.
Finally, in the last month of the quarter, weak demand in the region and rising inventories caused prices to fall again. Market participants also expected the ASF market to be challenging for about three months due to a significant slowdown in export demand from Europe due to the off-season for knitwear. Ultimately, the ASF 1.5D price declined to settle at USD 2650/MT FOB Texas.
APAC
The price of Acrylic Staple Fibre (ASF) experienced mixed sentiment in the second quarter of 2023, with prices mainly on a downward trend. The slowdown in orders reinforced this trend, as downstream demand declined and plants in Korea cut back production. Major ASF producers were forced to cut prices to attract customers, but buyers and consumers were reluctant to place new orders. Market sources said that it was difficult to improve the region's weak demand and that inventories were rising. In addition, export orders were low amid weak seasonal demand for woolen clothing. However, by the middle of the quarter, the price of ASF rose slightly as a result of tight material availability. This shortage provided some support to the ASF market despite the downward trend in the acrylonitrile market. Downstream orders from the upholstery sector increased during the quarter, but demand for knitwear declined. Overall, limited material availability was the main factor influencing the price of ASF during the period. In the first half of the year, the price decline was mainly driven by weak demand from sectors such as sweaters and hand-knitting yarns, which signaled a pessimistic outlook for ASF. The market had also experienced limited demand and minimal trading activity, which further exacerbated the downward price trend. As a result, the ASF price showed a mixed trend, hovering around USD 2602/MT CFR Busan.
Europe
The price of Acrylic Staple Fibre (ASF) fell in the German market during the second quarter of 2008, as crude oil prices fell on the back of gloomy forecasts for the global economy and concerns about the US banking system. Buying sentiment was also affected by reduced operating rates in the textile industry. However, due to low domestic demand, recent offers in the domestic market showed slight price declines. By the middle of the quarter, the price increase in the German ASF market suggested that the manufacturing sector in the region was only marginally affected. Consumer demand, however, remained mixed. Low stocks in the region supported the upward price trend, but this was not enough to justify the price increase, as the European market was also struggling with rising inflationary concerns. Meanwhile, there was no support from the feedstock market as the acrylonitrile market in the European region was in decline. Uncertainty in the European market with low inventories therefore led to a partial recovery in ASF prices in the second month of the quarter. However, by the end of the second quarter, the price of ASF 1.5D had fallen back to settle at USD 2320/MT FD Hamburg. Monthly inflation, as estimated by Eurostat, the statistical office of the European Union, also fell by 0.5% in June 2023. However, the off-season for knitwear continued to weigh on the market as demand from end-user industries fell sharply.
For the Quarter Ending March 2023
North America
The cost of Acrylic Staple Fibre (ASF) increased during the first quarter of 2023 due to the rising demand and fluctuating feedstock prices. The main driver was the rising cost of upstream Acrylonitrile, which is the primary raw material used in the production of ASF. This increase in cost was due to the fluctuation in crude oil prices globally, which impacted the price of the feedstock acrylonitrile. In addition, there was a slowdown in production rates due to labor disputes between union dock workers and their employers. This resulted in reduced inventories for some ASF enterprises, which led to selling pressure. However, despite the reduced inventories, the operating rate of textile industries remained mild, which helped to keep the ASF market bullish throughout the first quarter of 2023.
APAC
The first quarter of 2023 saw varied patterns in the price of Acrylic Staple Fibre (ASF) in Asian markets, with prices falling in Far East Asia and rising in Southeast Asia. Additionally, after China's Lunar New Year holiday, export demand increased. Following the holiday break, production rates quickly rose along with demand from the textile industry's downstream sector. Businesses also tried to increase stocks in anticipation of growing demand from downstream industries. However, downstream demand for sweaters and knitting supplies began to fall towards the end of the quarter, which turned the pricing trend for ASF around. Because of this, the price of ASF 1.5D fluctuated throughout the first quarter of 2023, with prices circling about USD 2425/MT FOB Qingdao in February.
Europe
A limited supply of raw materials and increased feedstock prices put pressure on the European Acrylic Staple Fibre (ASF) market. Production rates were low as producers tried to wait for some calmness in the feedstock market. The fundamentals of demand were also not very positive, and it seemed that downstream orders were small. However, despite having substantial stockpiles on hand, the price for ASF rose as demand was healthy from downstream sectors. As a result, increased demand, rising inflation, and changes in the price of imported raw materials all had an impact on the price of Acrylic Staple Fibre during the first quarter of 2023.
For the Quarter Ending December 2022
North America
During Q4 2022, the Acrylic Staple Fibre (ASF) market displayed mixed sentiments. A decline in demand from downstream textile industries was the main reason for the price drop in the first half. Meanwhile, decreased orders revealed the huge inventory and kept the pressure on both local and export pricing. Regional export and domestic prices were continuing weak pricing trends as a result of a lack of buying activity. Numerous reasons, including excessive inventory, rising inflation, and distrust among customers, were affecting the profitability of some producers. However, the demand for winter wear increased in the middle of the quarter, and production costs increased, resulting in a slight increment in prices. As a result, the price of ASF 1.5D in the US market fluctuated throughout the fourth quarter, reaching USD 2845/MT FOB Texas in November 2022.
APAC
Poor demand fundamentals led the Acrylic Staple Fibre (ASF) market to shrink in the Asian market during this quarter. The price in the Chinese market was low and stable, and the supply chain lacked assurance. As the terminal ran out of orders, the operational rate gradually fell. In the meantime, several areas have reduced their prices to promote shipment. In the first part of Q4, the consumption of clothing and light textiles in downstream industries was once again subpar. Later, due to the rigorous Zero-Covid Policy, small businesses found it difficult to meet their production goals in order to guarantee supplies over the winter. As a result of continued market fluctuations, the price ultimately settled at USD 2309/MT FOB Qingdao in November 2022.
Europe
Acrylic Staple Fibre (ASF) prices in Europe also fluctuated throughout the fourth quarter of 2022. Rising inflationary pressure and soaring energy prices had consequently weakened the consumer's attitude toward textile products. However European textile sector was also struggling with slow demand from its downstream sectors. Later, as inventories remained limited, the major driving factor behind price increment was rising feedstock Acrylonitrile prices amidst limited stocks, which had caused market participants to increase their offers. In Conclusion, the price for ASF 1.5D settled at USD 2418/MT FD Hamburg during October, considering high product availability and overall weak demand from the downstream textile sector in the second half of Q4.
For the Quarter Ending September 2022
North America
The price of Acrylic Staple Fibre is consistently under pressure in the global market. According to the ChemAnalyst data, the product has witnessed a steep fall during the first half of the third quarter. The acrylic staple fiber has been bearish due to limited buying and lowering feedstock Acrylonitrile prices. Downstream demand from end-use industries like sweaters, hand-knitting yarns, boat covers, and upholstery was dull as yarn producers witnessed lower sales, resulting in lower procurement of acrylic staple fiber. However, due to the impact of hurricane Ian, production was disrupted, leading to the marginal rise in ASF prices in the American market.
APAC
Prices for Acrylic Staple Fiber (ASF) remained mixed throughout the third quarter of 2022. After the trade disruption, there was a relatively low export demand for Acrylic Staple Fiber (ASF). Additionally, the price drop for propylene and low margins has aided the decline in ASF pricing. The price of the feedstock Acrylonitrile has been dropping, which has influenced the domestic market's lower pricing trend for ASF. The downstream apparel and home furnishings sectors saw sluggish demand, while ASF output in the market remained weak. Hence, the price of ASF 1.5D in China was fixed at USD 2380/MT FOB Qingdao during September. Later, due to the high temperature, power rationing issues, and the resurgence of COVID, most plants in China reduced their operating rate.
Europe
In Germany, ASF Price decreased by 5.3%, and values were evaluated in USD at 2681/MT in July. Due to weaker feedstock and shaky customer demand, ASF prices ceased their upward trend. One of the traders observed that given the poor market environment, which was getting worse with each passing day, most end customers were taking a wait-and-see approach. Strong and insulating acrylic fibers, frequently employed as a wool substitute in sweatshirts, tracksuits, and boot linings, are going through a downturn during the quarter. Later, Lowering River Rhine Level disrupted shipping and caused an economic slowdown, leading to weaker market sentiments.
For the Quarter Ending June 2022
North America
Acrylic Staple Fiber (ASF) prices decreased in North America throughout the second quarter, owing to the weaker downstream demand. The primary raw materials used to manufacture Acrylic Staple Fibers include Acrylonitrile and additives. Acrylonitrile is the main raw material used to produce Acrylic Staple Fiber. During the months of this quarter, acrylonitrile prices have continuously Fluctuated in the USA. Due to the reduction in feed ammonia prices, the production costs of Acrylonitrile decreased in the second half of Q2. However, demand for ASF from importing and domestic end-users such as Apparel, Household Furnishing industries remains lull during the second quarter of 2022. Therefore, after witnessing a significant decrement in its values, the prices of ASF dropped in the domestic market.
APAC
Acrylic Staple fiber (ASF) prices dropped in the first half of Q2, which gained momentum owing to the changing feedstock market. Export demand for ASF was relatively muted in the second half after recent shifts in trades, and the second wave of COVID also weakened demand fundamentals in Asian countries. Further, the Fall in Propylene price and low margins have supported the downtrend in the ASF prices. Still, the prices rebounded in the second half of this quarter, aided by the strong offtakes from downstream boat covers and upholstery industries. In contrast, the Indian market witnessed an exclusively downward trend in its price. Since the beginning of April, the cost of the feedstock Acrylonitrile has been declining, contributing to the downward price trend of ASF in the domestic market. Acrylic Staple Fibre export demand remained weak due to persistently high freight charges and tension between the two countries. In contrast, ASF production in the Indian market remained weak alongside weak demand from the downstream apparel and home furnishings sectors.
Europe
Acrylic Staple Fibre (ASF) prices in the European countries declined, supported by the low demand and disrupted supply. Raw material prices fluctuated throughout the quarter, but the order also slowed as producers mulled over their production, foreseeing the volatile global market and dull offtakes from consumers' end. Meanwhile, the demand fundamentals for the product in the domestic market were weak enough to keep prices low. Since the beginning of Q2, the cost of the feedstock Acrylonitrile has been fluctuating in the European countries, contributing to the downward price trend of ASF in the domestic market. Acrylic Fibres are mainly used for creating woolen garments. The winter season in Europe had been finished for a long time, so the offtake of Acrylonitrile from acrylic fiber-based companies decreased. Furthermore, stockpiles were sufficient to meet overall demand, and the supply rate was also improved in the second half of Q2, resulting in a decline in the price of ASF.
For the Quarter Ending March 2022
North America
In North America, the acrylic staple fibre market remained stable throughout the quarter due to weak demand from the downstream textile sector. Since the United States relies on Europe for the supply of product, limited supply resulting from the Russia-Ukraine war hampered product availability in the regional market. On the demand side, while demand increased from the carpet manufacturing sector the overall market remained stable with low offtakes from end-user textile industries. Meanwhile, the cost for feedstock Acrylonitrile and Propylene rose, following high crude oil value. As a result of the dull market for Acrylic Staple Fibre, its prices settled at USD 3120 FOB Texas in March 2022.
Asia Pacific
Manufacturers believe that demand for apparel plummeted in Q1-2022, but the demand from the carpet industry remained stable. Therefore, ASF prices fluctuated in a stable to narrow range due to the demand uncertainty from the apparel industry. On the other hand, ASP production in the Chinese market slowed down on the back of limited availability of raw material Acrylonitrile as it faced competition from other sectors with high demand from rubber, plastics, pesticides, and the chemical industry. However, prices for upstream Propylene fluctuated significantly in the first quarter, in line with volatile crude oil prices. Therefore, the cost of VSF 1.5D was assessed at USD 2885 per metric tons FOB Qingdao in February 2022.
Europe
Price of ASF 1.5D in Europe fell and settled at USD 2985 FD Hamburg in February due to low demand from the downstream textile industry. Conflict between Russia and Ukraine resulted in a war-like situation in the second half of the first quarter, which hampered the trade activities in Europe, consequently disrupting the product supply. In addition, high fares, port congestion and low demand from the textile sector have weakened market sentiment for Acrylic Staple fibre in the domestic market and stabilized the prices for Acrylic Staple Fibre in Europe.
For the Quarter Ending December 2021
North America
Imports of Acrylic Staple fibre from Asia Pacific region remained weak due to resolutely high freight charges from Asia to both US East Coast and US West Coast. USA also imports significant Acrylic fibre from Europe, however limited production deterred European manufacturers to send material over to US shores. Domestic production of ASF remained weak due to curtailed availability of feedstock acrylonitrile in H1 of Q4 however feedstock availability increased towards H2 as upstream propylene supply improved substantially during the last quarter. On demand side, ASF consumption remained stable owing to stagnant volume intakes from downstream users. On the back of aforementioned factors, prices of Acrylic Staple fibre were assessed at USD 2470 per MT in December.
APAC
Acrylic Staple Fibre prices kept its upward trajectory in the last quarter on the back of firm festive demand and inadequate availability. However, Indian government has been trying to regulate domestic textile sector, as it is one of the most important sectors of Indian Economy. Thus, to support Indian textile sector, Indian government has introduced 7 Mega Integrated Textile Region & Apparel (PM Mitra) to boost textile manufacturing in India. Therefore, taking cue from firm offtakes amid festive season in India, ASF prices rose significantly and settled at INR 275540/MT Ex-Ludhiana in October. However, there has been marginal dip in prices during last week of December signifying stability in demand of Acrylic Staple Fibre. In China, feedstock propylene prices tumbled throughout the quarter which resulted in decreased cost pressure over downstream Acrylic Staple Fibre. This in turn weakened ASF market and consequently Acrylic staple fibre prices declined during the last quarter.
Europe
Feedstock Acrylonitrile prices remained on the uptrend during Q4 which kept sustained cost pressure over downstream Acrylic Staple Fibre. Improved demand of acrylic apparel, clothing and furnishing in the European nations enhanced the consumption of Acrylic Staple fibre in the last quarter of 2021. Supply side fundamentals remained constrained as availability of acrylonitrile was termed as limited in the European markets. Imports of Acrylic Staple fibre were sluggish due to strong freight chargers and shipping costs. Consequently, Acrylic Staple fibre prices observed an incessant uptrend in last few months and settled at USD 2650 per MT in December.
For the Quarter Ending September 2021
North America
In Q3 of 2021, Acrylic Staple Fiber (ASF) supplies remained tight in the North American market owing to the lack of upstream Acrylonitrile. In the US Gulf region, several production plants along with petrochemical refineries were shut down for around two weeks because of power outages caused by the Ida hurricane in August. Cornerstone and Phillips 66 imposed an indefinite turnaround at their Acrylonitrile and Propylene production plants respectively ahead of the hurricane in August. Therefore, an exponential rise in the values of Acrylonitrile and Propylene was witnessed that consequently swelled up the prices of ASF during the period. Furthermore, disturbance in the supply channel and persistent demand from downstream textile, carpets and other end use industries also supported the inflation in the prices of ASF in the region.
Asia
In Q3 2021, a proliferative trajectory in the prices of Acrylic Staple Fiber was witnessed in the Asian market. Prominent surge in the values of Acrylonitrile and Propylene amid a staggering rise in upstream crude oil values contributed to the hike in the prices of ASF during the quarter. India imports a major part of Acrylonitrile from USA, Acrylonitrile supply tightened in the domestic market as an effect of the Ida hurricane in the USA. Similarly, China faced the consequences of the Ida hurricane which resulted the decline in imports from the US. Other factors such as tremendous rise in freight charges also contributed to the upward pricing trend of ASF during Q3. In India, Ex Ludhiana ASF prices were assessed at USD 3412.74/MT in September showcasing a hike by 2.7% since July.
Europe
The Acrylic Staple Fiber (ASF) market outlook witnessed an exponential rise followed by the constraint supplies of feedstock Acrylonitrile and Propylene in Europe like other regions. In Europe, most of the industries have been confronting a blizzard created by the surge in natural gas prices which also aided the upward trajectory in the ASF prices. Besides, steep climb in the freight charges across Europe-Asia and Europe-US interoceanic trade routes further sent ripples to the prices of ASF in the region.
For the Quarter Ending June 2021
North America
Post the disruptions caused by the winter storm Uri in the US gulf coast region, several plants ended their prolonged turnaround, thereby easing the availability of upstream Acrylonitrile (ACN) in the domestic market. The supplies of Acrylic Staple Fiber (ASF) in the North American market improved compared to the previous quarter. The ease in tightness of ASF narrowed the demand supply gap and eventually decline the prices of ASF in the regional market. Demand was firm from the textile industries. Some buyers were heard procuring large orders to replenish their inventory levels before the upcoming Hurricane season in the next quarter.
Asia Pacific
After the Lunar New Year holidays, the Chinese Acrylic Staple Fiber (ASF) market was catalysed by the restocking sentiments to the pre-pandemic levels. Furthermore, the plant operating rates at the spinners increased amidst the improved overseas demand which kept the regional market outlook firm throughout April. Whereas the Indian buyers showcased a strong wait and see approach for a larger part of Q2 as the second wave of the pandemic restricted the market activities. Pricing trend in China showcased mixed results as in the first half prices witnessed an uptrend while later declined pace with FOB Shanghai prices assessed at USD 2190 per tonne in June.
Europe
ASF supplies in the European region improved compared to the previous quarter as the upstream Acrylonitrile availability eased. However, some supply-side constraints were still observed as the suppliers exerted to clear the backlog of orders. Manufacturers took a sigh of relief after INEOS Nitriles restarted the production after the turnaround, further supported by the improved imports from the USA pushed the overall market outlook upwards. Demand remains firms from the downstream textile sector.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, ASF supplies were tight amidst the lack of upstream propylene which further led to restricted availability of the key feedstock Acrylic Acid as the sub-zero temperature conditions caused by the Arctic winter storm hit the USA Gulf region in mid-February that forced curtailed production levels. Demand was strong on the back of short supplies as the enquiries improved from the downstream textile sectors. Tight Acrylonitrile (ACN) supplies and firming raw material rates supported an enormous uptrend in ASF pricing with the lack of spot ASF availability increasing the competition among suppliers.
Asia-Pacific (APAC)
Acrylic fiber supplies in the region were balanced during the first quarter of 2021, as the commissioning of the new cracker in China provided ample amount of upstream product, however some constraints were witnessed due to Chinese lunar new year holidays. However, post Lunar New Year restocking catalyzed the market sentiments to pre-pandemic levels with operating rates of the spinners increased amidst stable-to-firm export demand. The Indian textile industry opted for surge in the import duties on Acrylic Staple Fiber from China to promote the “Atmanirbhar Bharat campaign”. Demand from the downstream sector surged as the seasonal offtakes from the downstream textile sector improved further supported by the construction sector. the quarterly average prices in southeast Asian market of Acrylic Staple fiber are around USD 1955/ton.
Europe
The supplies were constrained in the European region during the Q1 2021, as the INEOS nitriles ACN facility in the Dormagen (Germany) was on a turnaround which further curtailed the supplies of key feedstock to the Dralon fibers. The regional crackers were operating at low efficiency which disrupted the upstream supplies amid strict lockdown across Europe due to resurgence in coronavirus cases. The demand from the textile industry improved amid the peak winter season and strong apparel retail demand.
For the Quarter Ending September 2020
North America
Acrylic Staple Fiber (ASF) demand was observed to be stable with low price margins in Q1 and Q2. The demand of Acrylic Staple Fiber (ASF) is usually high due to long winter seasons in North America but due to extended lockdowns, the production of apparels was slowed and eventually came to a standstill by mid-July. Prices of Acrylic Staple Fiber (ASF) in Q3 were high due to appreciable demand for yarns and fibers. With the ease in lockdown by quarter end, supply of product across the region resumed as several manufacturers came onstream after a prolonged turnaround. Since major manufacturers have started the full-fledged production of the product and as the prices of raw material appear stable, market fundamentals of Acrylic Staple Fiber (ASF) are expected to gain stability by the next quarter.
Asia
Market fundamentals of Acrylic Staple Fiber (ASF) were hindered in the quarter ending September 2020 due to its low demand across Asia. Small scale and medium scale manufacturers had to halt the production in Q3 due to low demand and consequently low prices. In China, turnaround in Shandong Haili Petrochemical ASF plant that was shut in March, was extended till next year under fears of prevailing demand uncertainties. However, big industries continued to produce the product in small quantities as per the spot demand. Following consistent decline in the demand for feedstock Acrylonitrile, prices of Acrylic Staple Fiber (ASF) also decreased across Asia. As per industry experts, demand for the product is expected to recover in Q4 with active push in its seasonal demand from apparel industry.
Europe
In the third quarter of 2020, prices of Acrylic Staple Fiber (ASF) were high due to low production levels and fragile economic conditions in the region. Even though Europe is one of the major consumers of the product, the demand did not regain its original levels as compared to Q3 2019. With the extension of lockdown and increasing number of Covid-19 cases, the government had to issue guidelines to halt the activities that led to decreased supply of Acrylic Staple Fiber (ASF). In Q4, the demand of Acrylic Staple Fiber (ASF) is expected to increase with the rise in prices of raw material, Acrylonitrile.
